Saudi Aramco’s profits have plunged in Q2 as lower oil prices dragged down company’s revenue and stunted its growth, according to financial results released by the company on Tuesday.

The energy giant reported 92.04 billion Saudi riyals ($24.5 billion) in adjusted net income for the second quarter of 2025, falling short of the 425.71 billion riyals it made in revenue during the same period last year. That figure slid to 378.83 billion riyals this time around, even though trading volumes went up.

The company’s profit figure still beat analyst estimates of $23.7 billion, but that didn’t change the fact that weaker prices for both crude and refined chemicals dealt a serious blow to earnings.

Aramco blamed the slide on falling oil prices and softer demand for refined products, saying higher volumes weren’t enough to close the gap.

CEO Amin Nasser said the outlook for the rest of the year remains strong despite the hit, adding that they “anticipate oil demand in the second half of 2025 to be more than two million barrels per day higher than the first half.”

Capital spending ticks higher for Aramco while oil stays stuck

Aramco slightly increased capital spending from last year’s second-quarter figure of 45.5 billion riyals to 46.2 billion riyals. Since April, futures have stayed under pressure.

The big trigger was Washington’s rollout of new wide-ranging tariffs that raised concerns about future growth in the U.S., the world’s largest oil consumer.

Those tariffs also threw new doubt on the strength of the U.S. dollar, which is the currency used to price most global oil contracts. That currency instability made the situation even worse for producers already facing weak demand.

Traders have had to balance those risks with signals of rising supply, especially from OPEC+ members. Meanwhile, U.S. President Donald Trump stepped into the conversation with new threats against India over its continued purchases of Russian oil. That political tension added more volatility to the market.

As of Tuesday morning, Brent crude futures were down 1 cent to $68.75 a barrel, while U.S. West Texas Intermediate fell 2 cents to $66.28. Both contracts had already dropped by more than 1% in the previous trading session, closing at their lowest point in a week.

BP reports profit, returns focus to oil and gas

On the same day Aramco released its results, BP reported its own earnings, and they told a different story. The company posted an underlying Q2 net profit of $2.35 billion, beating expectations of $1.81 billion, based on an LSEG-compiled forecast.

CEO Murray Auchincloss credited performance in upstream operations for the result. “Inside the upstream, we’ve had tremendous performance, along with record operating efficiency [and] along with starting up five new major projects,” Murray told CNBC’s Squawk Box Europe.

One of those new efforts is happening in Brazil, in the Bumerangue block located in the Santos Basin, about 400 kilometers from Rio de Janeiro.

The company is currently running tests to evaluate what kind of reserves it’s dealing with. Murray added he was “very optimistic” about what the site could deliver.

BP has made a hard pivot back to fossil fuels. After years of trailing behind competitors, the company is now cutting back on renewable spending and doubling down on oil and gas.

The firm also announced it would raise its quarterly dividend to 8.32 cents, up from 8 cents, and confirmed it would keep its $750 million share buyback plan steady through the quarter.

BP shares were up 1.1% during early morning trading after the news dropped.

Even though the two companies reported on the same day, their situations couldn’t be more different. Aramco is still the largest oil producer in the world, but the pressure from global pricing and geopolitics is hitting it harder this quarter.

Meanwhile, BP is riding a short-term boost, but relying heavily on its move back into fossil fuels to stay afloat.

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